General or limited
Expanding into new markets can be challenging, especially when dealing with complex tax and legal systems.
In the Netherlands, non-EU businesses engaged in taxable activities must appoint a fiscal representative to comply with Dutch tax regulations. Choosing the right fiscal representative is crucial for success. Fiscal representation is a legal requirement for businesses based outside the European Union (EU) that are engaged in taxable activities in the Netherlands. This means that if you’re based in the US, for example, and you want to sell products or services to customers in the Netherlands, you’ll need to appoint a fiscal representative to act as your tax agent in the country. The main purpose of fiscal representation is to ensure that non-EU businesses comply with Dutch tax regulations. Your fiscal representative will handle all of your tax affairs in the Netherlands, including filing tax returns, dealing with tax authorities, and representing your business in any tax disputes. Choosing the right fiscal representative is crucial for the success of your business in the Netherlands. You’ll need to find someone who has a thorough understanding of Dutch tax law and regulations, as well as the specific needs of your business.
”Choosing the right fiscal representative is like choosing a business partner – crucial for success.”
General Fiscal Representation (GFR).
With our GFR service, we’ll provide your company with a personalized Dutch VAT number and article 23 license. We’ll handle the VAT declarations in your company’s name, giving you better visibility into your data. While the setup process takes about 6-8 weeks, you can still import shipments using our LFR service. With GFR, you have more options for transactions, including buying goods within the EU, using bonded warehouses, and selling goods B2C or with EXW/FCA incoterms (although these are not recommended due to higher risks). Additionally, you can use other service providers for customs clearance and transportation when using GFR by Neele-Vat.
Limited Fiscal Representation (LFR)
By utilizing LFR, you can take advantage of Neele-Vat’s Dutch VAT number and article 23 license. This means that we will handle your monthly VAT declaration under our name, which includes your shipments and those of other LFR clients. It’s important to note that LFR is limited to import shipments and the first subsequent delivery, and does not allow for purchasing goods in the EU, using bonded warehouses, or selling goods with certain incoterms or to consumers. Additionally, the transportation of your goods to their final destination after customs clearance must be arranged by Neele-Vat.
If your company is established outside the EU and you’re not interested in importing goods from outside the EU into the Netherlands, but you are interested in buying goods within the EU and subsequently delivering them either in the EU or outside the EU, this can also be arranged at Neele-Vat. We can organize the set-up of your Dutch VAT number and take care of your VAT declarations, without requesting an article 23 license.
EORI number set-up
To import goods into the EU, a unique EORI number assigned by EU customs authorities is mandatory for all companies and every import/export. This number is used for customs declarations of all goods entering or exiting the EU. If you need a Dutch EORI number, we can assist you in requesting one from the Customs administration of the Netherlands
Fortunately, in the Netherlands, we have the possibility to use VAT deferment with the article 23 license. The article 23 license allows us to transfer the VAT payment from the moment of import to the moment of VAT declaration to the Dutch tax authorities. In practice, this means we won’t have to pay the import VAT, since we’re allowed to deduct it in our VAT return at the same time.
This benefit is not only granted to Dutch companies. Companies established outside the Netherlands can also qualify for Dutch VAT deferment if they take on a Dutch company as their fiscal representative. Neele-Vat can act as a fiscal representative for your company and make sure you can take advantage of the article 23 license as well. Furthermore, Neele-Vat will take care of your VAT declarations and communications with the Dutch tax authorities.
Example with article 23 VAT:
Goods valued at €10,000 were customs cleared on July 8th, and with the VAT declaration due on October 12th, we can pay and reclaim the VAT resulting in a net VAT payment of €0 for the import of goods, under article 23 VAT.
Example without article 23 VAT:
Goods valued at €10,000 were customs cleared on July 8th and required a direct payment of €2,100 upon import. To reclaim this amount, you must register for a VAT number and submit a quarterly VAT declaration due on October 12th. Reclaiming the VAT takes approximately 6 weeks, meaning you won’t have access to your money for 5 months.